Today we live in a digital world where technology has become essential for survival. Whether it’s checking the nutritional value of food through health apps or getting a plumber to fix a water pipe through a home service app, everything is now just a tap away on our mobile screens. Digital payment apps, in particular, are revolutionizing numerous industries. Nowadays, people prefer to make payments through online modes rather than relying on hard cash, making digital payment apps increasingly popular and convenient.
As we are approaching digitalization with each passing day, it is important to acknowledge the things that led to digitalization and contactless payments were one of them. Online banking and payments through credit cards and debit cards were a huge digital revolution that took a massive leap with e-wallets and online payment systems.
Birth of digital payment apps
Digitalization has been a catalyst to the modern world and has massively contributed to conducting convenient transactions that save time and effort for users. In the past, there were many cases where bank fraud happened due to unauthorized online transactions.
This happened due to the technology barrier that put normal account owners and investors into huge losses. The reason was, the transactions were done online. People sometimes had to take help from other people to conduct the transaction online, which was unfortunately taken advantage.
However, now the securities and encryptions have gotten better and stronger with time. This has helped users to safely transfer money to other persons or merchandise with complete balance records through online payments supported by OTPs and verifications.
But online payment apps have made this process easier. Here is the basic model of how online payment apps work.
Digital payment apps offer a safer and easier mode of making online transactions for people who are not tech-savvy. The app designs are self-explanatory enough that navigate users how to use the app. Just scan the code or fill in the pin and the transaction is done immediately.
Basic functionalities in digital payment apps
1. An interactive user interface
The user should be able to use the app easily. The UI/UX designs and the wireframes should be self-explanatory enough so that users can navigate easily and check different options. Scrolling and swiping over the menu should lead the user to the result they are searching for.
So if you are planning to add more graphics and animation to your app, the cost will increase.
2. Secure login
When money is involved, privacy and security are the utmost priorities. The app should have a secure login. Just like Google Pay, where the user is only able to log in to the app post filling in the passcode or unlocking the iPhone, with the face ID, the person can log in. Even when the transaction is done the PIN is asked to ensure safety. Adding more login options like a biometric scan, face id, or passcode adds to the cost.
3. Seamless transactions
The primary reason why people today choose mobile payment applications for online transactions is the hassle-free process. Just fill in the amount, choose the bank account number from which you want to pay, fill in the PIN, and then the payment is done.
No need to fill in cheques or IFSC codes. Simply, tap and pay. So if you are developing an app that has the option to add multiple bank accounts and pay with single or multiple secured pins, this will add to the cost.
4. Checking account balance
The online payment apps are interlinked with the bank account. After every bank account transaction takes place, it should be reflected in the bank immediately. Also, the person should be able to check their balance anytime they want.
So this feature lets users directly check their bank account balance with a single tap from your app, which is a third-party platform. The cost is considered.
5. Fund transfer
The amount transferring to another bank account or another person’s e-wallet should be easy. Different apps have different ways of fund transfer.
Some do this by biometric confirmation, some others by adding a PIN that is set for ID, and some by putting in a phone passcode. So the way you choose to build it as well as the complexity of that feature determines the cost.
6. Recharge/bill payment
As told in the section above, multiple industries prefer online payment. Online payment apps should have options where they have a payment window for different services.
For example, you want to recharge your Netflix account. A direct button for a Netflix renewal subscription could be added. Just tapping the window and filling in the amount would provide payment to the respective service provider.
Therefore, adding more payment windows will add more cost.
7. Code scanner
This is one of the prominent features of Google Pay. Vendors are allotted a unique scanner code and the user does not have to manually fill in the GPay number to make the payment.
One can simply scan the code that is displayed in the shop and the amount gets transferred to the payee’s account.
Integrating a code scanner is a prominent feature that adds to the cost.
8. Authorizing credit card or bank account debit card
Many online payment apps remember filled card information. This way, payments could be done quickly. Remembering card data is an essential feature of payment gateways like PayPal.
But now it is also one of the prominent features coming for online payment apps. So that if the user has to directly pay through a credit card linked to the account, they can do it easily.
Since this feature is still new. You can expect it will add some amount to the overall expenditure.
9. Push notifications
The notifications that keep you updated with app new versions, announcements, or messages increase customer loyalty. It is one of the prominent features that keep users notified related to activities and news of the app. This feature adds to customer satisfaction.
10. Discount/redeem coupons
The best way to keep users engaged with you is by keeping showing them the advantages of using the app. If you provide discounts or coupons that subtract the price value of the transaction they are doing.
Like ordering food online with the app or making any kind of purchase.
You should enable such a strategy. It is not technically a part of the development but plays a huge part in getting you, loyal customers.
11. Digital receipts
Whatever the user is selling or buying and getting transactions done through the online payment app, the invoice should be provided. Just like the user can check the balance.
Similarly, they should instantly be provided with the receipt that probes the evidence of the transaction. Therefore the instant generation of e-receipts over the screen is an added feature that if not much, adds a little cost.
12. Loyalty card and rewards
The user who sticks to your app needs o get appreciated. And that is why you have to provide them with rewards for using your mobile app to do transactions.
Just like Google pay, you can give a scratch card after transactions or spin a wheel or anything like that work keeps your user excited to use your app again and again.
Such scratch and animated spin wheel features are some of the important factors that add to the cost. The redeemed awards have to be credited to the user’s account balance too and this also needs a separate mechanism
Till now we talked about the basic features that make a good online payment app. Now we will be discussing some advanced features that could be a USP of your app but add cost to your budget significantly.
Cost of making digital payment app
Based on the above factors, the total cost of developing an e-wallet app for the Android platform is around $15,000 to $25,000, while for the iOS platform, it is around $18,000 to $30,000. Developing a cross-platform e-wallet app costs around $15,000 to $40,000 if any inquiries contact to MicraSol.